What are the Objectives of Financial Modelling?There are many...

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    What are the Objectives of Financial Modelling?

    There are many uses, or objectives, for financial modelling. From financial analysts to company executives, these informative spreadsheets and calculations are heavily impactful.

    Some of the main objectives include:

    • Raising capital
    • Providing a valuation for a business
    • Budgeting
    • Forecasting
    • Selling assets and business units
    • Acquiring businesses or assets
    • Performing financial statement analysis
    • Allocating capital and resources
    • Growing the business
    • Implementing strategy
    • Calculating project costs

    Financial modelling works off of assumptions. Along with good assumptions, a key to accurate modelling is the data you use to carry out the calculations.

    The model is only as good as your input.

 
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